Lithium-ion Battery Packs Market
Lithium-ion Battery Packs Market (Type: Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium Nickel Manganese Cobalt, and Others; Pack Type: Series Battery Pack and Parallel Battery Pack; Power Capacity: Up to 24 Volt, 24 Volt - 48 Volt, and Above 48 Volt; and End User: Automotive, Marine, Mining, Renewables, Electronics, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
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Growing Need of Renewable Energy Storage Propels Lithium-ion Battery Packs Market
Lithium-ion battery is trending in the use of portable electronics and electric vehicles, owing to the rechargeability features. They are being used in military and aerospace applications recently. The rising awareness about renewable energy and strict government ordinances are leading to increased investment in renewable sources of energy. Renewable sources do not provide continuous energy, and thus, there is a need to store the energy to provide a constant power supply. The lithium-ion battery packs market is projected to witness a global rise due to advancements in technology and growth in demand for cost-effective solutions for the storage of renewable energy.
The number of nations agreeing to the Paris Climate Change Agreement is increasing significantly. The agreement ensures the decline in carbon footprint and greenhouse gases by decreasing their dependence on fossil fuels. These are anticipating new opportunities and increasing demand for lithium-ion battery packs. Moreover, with the use of advanced technology, the present lithium-ion battery packs are lightweight, small, and less stand-by rate with high energy density. Compared to other types of batteries, lithium-ion battery packs carry low levels of toxic heavy metals, proving to be an environment-friendly alternative to store energy. These factors are likely to drive the lithium-ion battery packs market during the forecast period.
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Use of Lithium-Ion Battery Packs in Electric Vehicles Globally
The usage of lithium-ion batteries has significantly increased in automobiles, marine, and consumer goods industries. These batteries can allow better energy density and voltage capacity compared to their alternatives. However, lithium-ion battery packs can cost much higher with a longer charge time. Thus, manufacturers need to focus on improving battery capacities and lifespan, reducing charging time and battery size making them cost-effective. Moreover, as the expense of replacement of lithium-ion batteries is high and regular replacement increases operational costs, manufacturers are now focusing on increasing the number of charging cycles of batteries. Due to rising number of innovations taking place in batteries and increasing market competition, the price of the lithium-ion battery pack is expected to decrease in the near future.
The automobile sale is growing rapidly, mostly due to increased population and varying consumer buying patterns. Growing environmental concerns and developments in electronic controlled units are fueling the demand and production of electric vehicles. The lithium-ion battery packs are significantly used in electric vehicles due to low maintenance and lower self-discharge rate than other rechargeable batteries. Thus, with the rise in the demand for electric vehicles, the global lithium-ion battery packs market is expected to grow during the forecast period. Moreover, in the marine industry, most vessels run on fuel that causes high levels of pollution. The solution is to adopt hybrid and fully electric systems in retrofit ships as well as new ships, and the trend has been successfully rising. Therefore, the demand for adoption of lithium-ion battery packs in the marine industry is foreseen to propel the lithium-ion battery packs market during the projection period.
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Expanding Automotive Industry in Several Regions Proving Vital for Market Growth
The supportive governmental regulations for electric vehicles are raising the demand for full and hybrid electric vehicles globally. The automotive segment of the lithium-ion battery packs market held a significant share that stood at 54.72% in 2020. The automotive segment is projected to generate opportunities valued over US$ 67 Bn during the forecast period. Furthermore, major factors such as the growing adoption of consumer electronics, improving research and development drives by various organizations and battery producers, and rising demand for plug-in vehicles are contributing toward the lithium-ion battery packs market growth, which is expected to exceed US$ 120.3 Bn by 2031, expanding at a CAGR of ~11% during the forecast period.
In 2020, owing to industrial as well as urban development over the past few decades, the Asia Pacific has dominated the global lithium-ion battery packs market. Being a manufacturing hub for lithium-ion battery packs, China is leading the Asian market and is expected to further grow during the forecast period. Besides Asia Pacific, Europe also contributed to the increased productivity of the global lithium-ion battery packs market in 2020. Europe is expected to dominate the automotive section of the lithium-ion battery packs market. Moreover, North America is an important region as one of the leading manufacturers of automobiles, consumer electronics, and power. Initiatives by governments, such as funding, subsidies, and tax benefits for lithium-ion battery pack manufacturers and end users are projected to propel the lithium-ion battery packs market in the region during the forecast period.
Cynical Impact of COVID-19 Leads to Decline in Energy Consumption
The leading manufacturers in the lithium-ion battery packs are expanding their presence in untouched regions. BYD, a China-based multinational company, accounted for a major share of the market due to its worldwide presence and broad product portfolio in the lithium-ion battery packs. Other prominent players in the market, including Toshiba Corporation, SAMSUNG SDI CO., LTD., Tesla, etc. are focusing on low-cost products and expanding the distribution channels, which is likely to result in global market growth. However, the ongoing COVID-19 pandemic is impacting the market with several factors such as limited distribution channels. The power industry is severely affected due to a drop in working of commercial and industrial sectors, as many nations are implementing a complete lockdown.
The electricity consumption in the U.S. dropped by a record 4.6% in 2020. The lockdown has shut various businesses, reducing the consumption of electricity. European nations such as France, Spain, and Italy are witnessing a decline in electricity demand. Moreover, since May 2020, the development of renewable energy projects, equipment supplies, policy implementation, including permitting, licensing, and auctions, and financing have been almost restored in major parts of the world. In addition, rapid production of vaccines with increased distribution and efforts taken by project developers and manufacturers to adjust to ongoing social distancing rules are driving the lithium-ion battery packs market.
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The lithium-ion battery packs market is rapidly replacing Nickel-Cadmium (NiCad) rechargeable batteries due to stringent government regulations and increased environmental awareness of consumers. The rise in the demand for lithium-ion battery in electric vehicles (EVs) and grid storage due to its high-energy density solutions and lighter weight is anticipated to fuel the production and sales of lithium-ion battery packs during the projected period. However, a lack of charging infrastructure in port areas in all major parts of the world may hinder growth rate of the market. The cost of charging infrastructure and the price of transporting electricity from a local grid to a port terminal range are currently very high. Nevertheless, advancements in technological research and development are ensuring increase in charging infrastructure, helping to overcome the restraint during the forecast period.
Lithium-ion Battery Packs Market: Overview
- According to Transparency Market Research’s latest research report on the global lithium-ion battery packs market for the forecast period of 2021 to 2031, increase in usage of lithium-ion battery packs in automobile and electronics industries is expected to boost the global lithium-ion battery packs market during the forecast period
- Lithium-ion battery packs are lightweight, compact, low maintenance, and have low self-discharge rate & high energy density. Furthermore, lithium-ion battery packs contain low levels of toxic heavy metals compared to other types of batteries. Thus, demand for lithium-ion battery packs is high among end users across the world.
- In terms of revenue, the global lithium-ion battery packs market expected to exceed US$ 120.3 Bn by 2031, expanding at a CAGR of ~11% during the forecast period
Increase in Adoption of Lithium-ion Battery Packs in Marine Industry: Key Driver of Lithium-ion Battery Packs Market
- Marine vessels run on bunker fuel, which causes high level of pollution. Furthermore, greenhouse gases are a major concern across the globe. Every year, air pollutants such as carbon monoxide, nitrogen oxide, sulfur oxide, and particulate matter are released in large amounts into the environment. Governments of various countries across the world are implementing rules and regulations to reduce pollution.
- January 1 2020 onward, member countries of the European Union need to ensure that ships in all European Union waters use fuels with sulfur content of no more than 0.5%. Furthermore, all ships passing through these NOx emission control areas must use defined mandatory engine standards or equivalent NOx emission reduction technologies to respect the stricter NOx emission levels.
- Adoption of hybrid and full electric systems in retrofit ships as well as new ships has been rising since the past few years due to these stringent norms. This trend is expected to continue in the near future. Hybrid and full electric marine vessels reduce air pollution as well as the operational cost of vessel in the long-run. Furthermore, energy stored in lithium-ion battery packs can be used during peak hours in marine propulsion systems. This helps reduce the usage of fossil fuel and save costs.
- Thus, increase in adoption of lithium-ion battery packs in the marine industry is expected to drive the lithium-ion battery packs market during the forecast period
High Application of Lithium-ion Battery Packs in Renewables
- Investment in renewable energy projects has increased over the last decade, due to the rise in awareness about the environment. Energy from renewable sources is not continuous. It requires storage to provide continues power supply. Thus, lithium-ion battery packs are estimated to play a critical role in this, as lithium-ion battery packs have low self-discharge rate, high energy density, and long life compared to any other battery packs.
- Generation of renewable energy is expected to reach more than 30 trillion kilowatt-hours by 2030 and more than 40 trillion kilowatt-hours by the end of 2050. This significant increase in renewable energy projects is likely to propel the demand for lithium-ion battery packs during the forecast period.
Lithium-ion Battery Packs Market: Competition Landscape
- Detailed profiles of manufactures of lithium-ion battery packs have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- The lithium-ion battery packs market is moderately fragmented, with many national and multinational players operating in the lithium-ion battery packs market. Furthermore, many new players are anticipated to enter the lithium-ion battery packs market due to high demand for lithium-ion battery packs.
- Key players operating in the global lithium-ion battery packs market are
- A123 Systems LLC
- ENVISION AESC GROUP LTD.
- LG Chem
- Panasonic Corporation
- BAK Power
- Toshiba Corporation
- BYD Company Ltd.
- Total Battery Solutions Ltd
- ROMEO POWER, INC
- SAMSUNG SDI CO.,LTD.
- Excell Battery Co.
- Amperex Technology Limited
- Corvus Energy
Lithium-ion Battery Packs Market: Key Developments
- Key providers of lithium-ion battery packs such as Tesla, BYD Company Ltd, LG Chem, and Panasonic Corporation are focusing on geographical expansion to capture untapped markets. Major developments in the global lithium-ion battery packs market are highlighted below:
- In January 2020, Saft announced plans to launch a pilot plant to manufacture lithium-ion battery packs for electric vehicles. The plant is scheduled to start up in mid-2021 and represents an investment of more than US$ 230 Mn. Located in France’s Nouvelle-Aquitaine region, the project is expected to start its manufacture of EV batteries by 2023.
- On January 10, 2021, BYD Company Ltd. announced that it had exclusively won cumulative orders to supply 1,002 units of pure electric buses to the capital of Colombia. These buses are likely to be delivered by the end of 2022.
- In the global lithium-ion battery packs market report, we have discussed individual strategies, followed by company profiles of manufacturers of lithium-ion battery packs. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global lithium-ion battery packs market.
Lithium-ion Battery Packs Market – Scope of the Report
The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global lithium-ion battery packs market to accurately gauge its potential development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the lithium-ion battery packs market to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the lithium-ion battery packs market will progress during the forecast period of 2021 to 2031.
The report offers intricate dynamics about the different aspects of the lithium-ion battery packs market that aid companies operating in the market in making strategic development decisions. TMR’s study also elaborates on the significant changes that are highly anticipated to configure the growth of the lithium-ion battery packs market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the lithium-ion battery packs market. The report estimates statistics related to the market progress in terms of value (US$ Bn).
This study covers a detailed segmentation of the lithium-ion battery packs market, along with key information and a competitive outlook. The report mentions the company profiles of key players that are currently dominating the lithium-ion battery packs market, wherein various development, expansion, and winning strategies practiced and executed by leading players have been presented in detail.
Key Questions Answered in TMR’s Report on Lithium-ion Battery Packs Market
The report provides detailed information about the global lithium-ion battery packs market on the basis of comprehensive research on various factors that are playing a key role in accelerating the market growth. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in the global lithium-ion battery packs market so as to help them design successful strategies and make target-driven decisions.
- Which type segment would emerge as a revenue generator for the global lithium-ion battery packs market during the forecast period?
- How are key market players successfully earning revenues in the competitive global lithium-ion battery packs market?
- What would be the Y-o-Y growth trend of the global lithium-ion battery packs market between 2021 and 2031?
- What are the winning imperatives of leading players operating in the global lithium-ion battery packs market?
- Which end user segment is expected to offer maximum potential to the global lithium-ion battery packs market during the forecast period?
Research Methodology – Lithium-ion Battery Packs Market
The research methodology adopted by analysts for compiling the report on the global lithium-ion battery packs market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global lithium-ion battery packs market.
During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on the data obtained through interviews of genuine sources, analysts have emphasized the changing scenario of the global lithium-ion battery packs market.
For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global lithium-ion battery packs market.
Lithium-ion Battery Packs Market – Segmentation
TMR’s research study assesses the global lithium-ion battery packs market on the basis of type, pack type, power capacity, end user, and region. This report presents extensive market dynamics and growth trends associated with different segments and how they are influencing growth prospects for the global lithium-ion battery packs market.